Julian Birkinshaw. London Business School. Types of Innovation. Management model. innovation. Business model . innovation. Product. or Service innovation. ID: 656488
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Presentations text content in Business Models & Management Models
Slide1
Business Models & Management Models
Julian Birkinshaw
London Business School
Slide2
Types of Innovation
Management model
innovation
Business model
innovation
Product
or Service innovation
Technological
innovation
Operational
innovation
Slide3
Some companies with innovative business models
Slide4
Some companies with innovative
management models
Slide5
Some definitions
Business Model
: “the content, structure, and governance of transactions designed so as to create value through the exploitation of business opportunities” (Amit and Zott, 2001)
Management Model: “The choices made about how work gets done inside the organisation” (Birkinshaw, 2008)
Slide6
Management as a set of conscious choices
Business Model
Choices
firms make
about:
Sources of revenue Cost structure
What to make / buy How to make a profit
Management
Model
Choices firms make about:
Coordinating activities
Making decisions
Motivating employees
Defining objectives
Slide7
Management Model: Related bodies of literature
Contingency / Configuration theory
Structures and systems fit with environmentDifferent archetypes can be identified (e.g. Burns & Stalker, Greenwood & Hinings)
Organization CultureBeliefs, norms, practices shape behaviour Different cultural models can be identified (e.g. Denison, Goffee &Jones)
Slide8
Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Traditional Principles
Alternative Principles
Motivating Employees
Intrinsic
Extrinsic
Slide9
Emergence
Shared Space: An intriguing analogy
Slide10
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Coordinating Activities
Slide11
Collective Wisdom
91%
65%
Slide12
Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Slide13
Obliquity
Goals are best achieved indirectly
If you want to get to point A, aim at point B
Slide14
Two perspectives on goal setting
“To improve the quality of life for the communities we serve.”
“We must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards.”
Slide15
Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Traditional Principles
Alternative Principles
Motivating Employees
Intrinsic
Extrinsic
Slide16
Extrinsic and Intrinsic Motivation
Theory X
We work to live
Effort is driven by material rewards
Theory Y
We live to work
Effort comes from intrinsic need to achieve
Slide17
Management model = explicit choices on these four dimensions
Bureaucracy
Emergence
Hierarchy Collective Wisdom
Extrinsic IntrinsicLinear alignment Obliquity
Loose Ends, Tight Means
Loose Means, Tight Ends
Means
Ends
Slide18
Four models
Tight Loose
Tight
Loose
ENDS
MEANS
“Discovery” Model
“Quest” Model
“Planning” Model
“Scientific” Model
Slide19
Planning Model
Clear objectives, clear incentives for achieving those objectives
Tight control from the top, carefully-designed structures and processes
Slide20
Quest Model
Clear objectives, clear incentives for achieving those objectives
Enormous degrees of freedom in how objectives will be achieved
Slide21
Scientific Model
Broad purpose, not clear objectives; emphasis on intrinsic motivation
Well-understood methods for making progress
Slide22
Page 22
The Scientific model in action: Arup
“There are two ways of looking at how you earn a living:
One is to view work is a necessary evil; the other is to make your work interesting and rewarding. We opt uncompromisingly for the second way.”
1970 Key Speech by Ove Arup
Slide23
Discovery Model
Broad and often vague goals; emphasis on intrinsic motivation
Many pathways to success, all equally validOften seen in entrepreneurial settings
Serendipity (n): “The art of making happy discoveries”
Slide24
A common trajectory
Tight Loose
Tight
Loose
ENDS
MEANS
“Discovery” Model
“Quest” Model
“Planning” Model
“Scientific” Model
Slide25
A research agenda
Which management model(s) are most effective under which conditions?
How do management models and business models relate to one another?How do companies change their management models?What other management model dimensions might we identify?
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DownloadNote - The PPT/PDF document "Business Models & Management Models" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in Business Models & Management Models
Business Models & Management Models
Julian Birkinshaw
London Business School
Slide2Types of Innovation
Management model
innovation
Business model
innovation
Product
or Service innovation
Technological
innovation
Operational
innovation
Slide3Some companies with innovative business models
Slide4Some companies with innovative
management models
Slide5Some definitions
Business Model
: “the content, structure, and governance of transactions designed so as to create value through the exploitation of business opportunities” (Amit and Zott, 2001)
Management Model: “The choices made about how work gets done inside the organisation” (Birkinshaw, 2008)
Slide6Management as a set of conscious choices
Business Model
Choices
firms make
about:
Sources of revenue Cost structure
What to make / buy How to make a profit
Management
Model
Choices firms make about:
Coordinating activities
Making decisions
Motivating employees
Defining objectives
Slide7Management Model: Related bodies of literature
Contingency / Configuration theory
Structures and systems fit with environmentDifferent archetypes can be identified (e.g. Burns & Stalker, Greenwood & Hinings)
Organization CultureBeliefs, norms, practices shape behaviour Different cultural models can be identified (e.g. Denison, Goffee &Jones)
Slide8Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Traditional Principles
Alternative Principles
Motivating Employees
Intrinsic
Extrinsic
Slide9Emergence
Shared Space: An intriguing analogy
Slide10Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Coordinating Activities
Slide11Collective Wisdom
91%
65%
Slide12Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Slide13Obliquity
Goals are best achieved indirectly
If you want to get to point A, aim at point B
Slide14Two perspectives on goal setting
“To improve the quality of life for the communities we serve.”
“We must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards.”
Slide15Defining Objectives
Making Decisions
A management model framework
Emergence
Bureaucracy
Collective Wisdom
Hierarchy
Obliquity
Linear Alignment
Coordinating Activities
Traditional Principles
Alternative Principles
Motivating Employees
Intrinsic
Extrinsic
Slide16Extrinsic and Intrinsic Motivation
Theory X
We work to live
Effort is driven by material rewards
Theory Y
We live to work
Effort comes from intrinsic need to achieve
Slide17Management model = explicit choices on these four dimensions
Bureaucracy
Emergence
Hierarchy Collective Wisdom
Extrinsic IntrinsicLinear alignment Obliquity
Loose Ends, Tight Means
Loose Means, Tight Ends
Means
Ends
Slide18Four models
Tight Loose
Tight
Loose
ENDS
MEANS
“Discovery” Model
“Quest” Model
“Planning” Model
“Scientific” Model
Slide19Planning Model
Clear objectives, clear incentives for achieving those objectives
Tight control from the top, carefully-designed structures and processes
Slide20Quest Model
Clear objectives, clear incentives for achieving those objectives
Enormous degrees of freedom in how objectives will be achieved
Slide21Scientific Model
Broad purpose, not clear objectives; emphasis on intrinsic motivation
Well-understood methods for making progress
Slide22Page 22
The Scientific model in action: Arup
“There are two ways of looking at how you earn a living:
One is to view work is a necessary evil; the other is to make your work interesting and rewarding. We opt uncompromisingly for the second way.”
1970 Key Speech by Ove Arup
Slide23Discovery Model
Broad and often vague goals; emphasis on intrinsic motivation
Many pathways to success, all equally validOften seen in entrepreneurial settings
Serendipity (n): “The art of making happy discoveries”
Slide24A common trajectory
Tight Loose
Tight
Loose
ENDS
MEANS
“Discovery” Model
“Quest” Model
“Planning” Model
“Scientific” Model
Slide25A research agenda
Which management model(s) are most effective under which conditions?
How do management models and business models relate to one another?How do companies change their management models?What other management model dimensions might we identify?
Slide26